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Time to Give Netflix Its Dot-Com Due

Disciplined growth has helped it through many setbacks

By Ambreen Ali,  Newser User

Posted Jan 28, 2009 4:47 PM CST

(Newser) – Despite plenty of naysayers, Netflix boasts success like few other dot-coms, Chris O’Brien writes in the San Jose Mercury News. The movie-rental service reported record earnings despite the recession, “a neat trick that eBay and Yahoo could only dream of emulating.” Netflix’s innovative distribution system, inventory management, and prescient web-to-TV video streams have won it a permanent spot on the cutting edge.

Online video could have disrupted the mail-based company, but “Netflix may have already outflanked many competitors, including Apple,” O’Brien claims, by delivering web streams to TV via Xbox and TiVo. “If Netflix manages this transition artfully, it will reap big savings in postage and inventory,” boosting its growing core business. Netflix, he concludes, has perfected the “delicate dance of spending capital at the right time.”

Tivo and Netflix have joined forces to stream movies and TV episodes from the internet straight to televeision sets.
Tivo and Netflix have joined forces to stream movies and TV episodes from the internet straight to televeision sets.   (PRNewsFoto)
The mail rental service has a market value 10 times that of Blockbuster, though it makes a quarter of its rival's revenue.
The mail rental service has a market value 10 times that of Blockbuster, though it makes a quarter of its rival's revenue.   (AP Photo)
Netflix CEO Reed Hastings smiles at Netflix headquarters in California. With record earnings amid the economic slump, Netflix looks like one of most successful dot-coms ever.
Netflix CEO Reed Hastings smiles at Netflix headquarters in California. With record earnings amid the economic slump, Netflix looks like one of most successful dot-coms ever.   (AP Photo/Paul Sakuma, file)
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Netflix has gone completely against the conventional wisdom of Silicon Valley, which says growth is overseas - Chris O'Brien

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COMMENTS
Showing 3 of 3 comments
MattyP654
Feb 8, 2009 11:13 PM CST
I love me my Netflix.
Guest
Jan 29, 2009 3:36 AM CST
Netflix baby, YEAH!
Guest
Jan 28, 2009 7:18 PM CST
Netflix rules.

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